MAN 4720-EXAM 1 QUESTIONSAND
ANSWERS 100% CORRECT
Corporate strategy - ANSWER-The strategy involved in managing multiple business
units under the same
corporate banner.
Porter's Five Forces - ANSWER-1. Competition in the industry
2. Potential of new entrants into industry
3. Power of suppliers
4. Power of customers
5. Threat of substitute products
Frederick Taylor - ANSWER-Father of the "science of work" time and motion studies
that helped identify
more efficient production processes and ideas about structure and hierarchy.
Long-range planning - ANSWER-A traditional approach to planning used before 1980
that often simply
extrapolated into the future what the company had done well in the past.
Metrics - ANSWER-Qualitative and quantitative measures that allow the firm to measure
the effectiveness
of its business strategy.
Michael Porter - ANSWER-Leading proponent of the move from long-range planning to
strategy. His two
early books on the subject, Competitive Strategy and Competitive Advantage, described
competitive strategy as "positioning a business to maximize the value of the capabilities
that
distinguish it from its competitors.
Value creation - ANSWER-Understanding and delivering new values appreciated by
both existing
and new customers and other stakeholders.
Opportunity recognition - ANSWER-the critical need in business to identify and exploit
where the market
is heading.
Strategic decisions - ANSWER-Strategic decisions exhibit five characteristics: 1) are
relevant to ill-
, structured and non-routine situations; 2) significantly affect the subsequent actions of
the entire
organization; 3) involve a significant commitment of resources; 4) are difficult to reverse
both
economically and politically; and 5) are easily identified with the success or failure of the
organization.
Normal profit - ANSWER-The minimum return earned by a company that is necessary
to attract and secure
the owners' inputs. Generally defined as the cost of equity capital multiplied by the
amount of
shareholder equity.
Stakeholders - ANSWER-Individuals or groups who have an interest in or an influence
on the business and
operations of a company. They fall into two categories - internal stakeholders and
external
stakeholders.
Triple bottom line - ANSWER-Measuring performance in economic, social and
ecological (or
environmental) terms.
Mission statement - ANSWER-A brief statement that summarizes how and where the
firm will compete in
the present.
Strategic management - ANSWER-The process through which strategy is developed,
executed, and
evaluated. There are typically four stages of the strategic management process:
analysis,
formulation, implementation, and evaluation.
Strategy - ANSWER-The overall concept for how a company organizes itself and all its
activities in order
to conduct business successfully, outperform competitors and deliver superior returns to
its
shareholders.
Sun Tzu - ANSWER-Author of The Art of War, an ancient Chinese book on military
strategy.
Superior performance - ANSWER-As used in the field of strategy, refers to performance
outcomes that
exceed the average for the industry in which the company competes.
ANSWERS 100% CORRECT
Corporate strategy - ANSWER-The strategy involved in managing multiple business
units under the same
corporate banner.
Porter's Five Forces - ANSWER-1. Competition in the industry
2. Potential of new entrants into industry
3. Power of suppliers
4. Power of customers
5. Threat of substitute products
Frederick Taylor - ANSWER-Father of the "science of work" time and motion studies
that helped identify
more efficient production processes and ideas about structure and hierarchy.
Long-range planning - ANSWER-A traditional approach to planning used before 1980
that often simply
extrapolated into the future what the company had done well in the past.
Metrics - ANSWER-Qualitative and quantitative measures that allow the firm to measure
the effectiveness
of its business strategy.
Michael Porter - ANSWER-Leading proponent of the move from long-range planning to
strategy. His two
early books on the subject, Competitive Strategy and Competitive Advantage, described
competitive strategy as "positioning a business to maximize the value of the capabilities
that
distinguish it from its competitors.
Value creation - ANSWER-Understanding and delivering new values appreciated by
both existing
and new customers and other stakeholders.
Opportunity recognition - ANSWER-the critical need in business to identify and exploit
where the market
is heading.
Strategic decisions - ANSWER-Strategic decisions exhibit five characteristics: 1) are
relevant to ill-
, structured and non-routine situations; 2) significantly affect the subsequent actions of
the entire
organization; 3) involve a significant commitment of resources; 4) are difficult to reverse
both
economically and politically; and 5) are easily identified with the success or failure of the
organization.
Normal profit - ANSWER-The minimum return earned by a company that is necessary
to attract and secure
the owners' inputs. Generally defined as the cost of equity capital multiplied by the
amount of
shareholder equity.
Stakeholders - ANSWER-Individuals or groups who have an interest in or an influence
on the business and
operations of a company. They fall into two categories - internal stakeholders and
external
stakeholders.
Triple bottom line - ANSWER-Measuring performance in economic, social and
ecological (or
environmental) terms.
Mission statement - ANSWER-A brief statement that summarizes how and where the
firm will compete in
the present.
Strategic management - ANSWER-The process through which strategy is developed,
executed, and
evaluated. There are typically four stages of the strategic management process:
analysis,
formulation, implementation, and evaluation.
Strategy - ANSWER-The overall concept for how a company organizes itself and all its
activities in order
to conduct business successfully, outperform competitors and deliver superior returns to
its
shareholders.
Sun Tzu - ANSWER-Author of The Art of War, an ancient Chinese book on military
strategy.
Superior performance - ANSWER-As used in the field of strategy, refers to performance
outcomes that
exceed the average for the industry in which the company competes.
